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Roads yes; toll no

Government getting an earful on highway improvement fee



Highway construction equipment works on Highway 3 near Rae. The government says it needs a toll to pay for $100 million worth of improvements to the territories' existing highways. - NNSL file photo



Terry Kruger
Northern News Services

With reports from staff in Inuvik and Fort Simpson

Yellowknife (Oct 08/01) - From Inuvik to Hay River, and around the territory, opponents are lining up to shoot down the government's proposed highway improvement toll.

In Inuvik, hundreds have signed a petition and council's opposition is on record following a 5- 3 vote.

"If it's such a good idea, why are so many private groups opposed to it?" asked Coun. Clarence Wood during a recent meeting with Highways Minister Vince Steen.

A Hay River trucking company vice- president, Shawn Carter, said the toll would kill his business.

"Why would they want to call if they're going to get a $300 tax?" asked Carter.

"It's just another hit the government is giving us," Fort Simpson Mayor Tom Wilson told a legislature committee seeking input on the fee.

"Two cents here, three cents there, it all starts adding up ... we're just not going to be able to afford to live."

Peter Vician, deputy minister of highways, said the government is getting a mixed message, that people want upgraded highways but don't want to pay for them this way.

"They're not prepared to see nothing done," said Vician last week. "What (people) are saying is the impact on industry and consumers in the NWT has not been appropriately considered."

Questioning the cost

That's exactly what a coalition of territorial business associations believes.

The group has hired an economist to find out what the price will be on businesses, industry and consumers. That report has not yet been completed.

"It's going to drive up costs," said Mike Vaydik, who heads the group on behalf of the NWT- Nunavut Chamber of Mines. "If you put the cost of gas up two cents a litre, you put up the price of a ticket to Lutsel K'e."

He is worried the fee will put a chill on the mining industry, both exploration and production.

Manufacturers are particularly concerned.

Yellowknife- based Slade's Mechanical brings materials into the capital, assembles mechanical systems at its operation here. It's then loaded on a truck and taken to the construction site.

They would pay the toll to bring materials in and ship finished goods out.

Owner Neil Slade is doubly concerned about the impact raising the cost of living.

Attracting qualified workers is already difficult, and this "is just going to make it worse."

Highways in rough shape

The government is concerned that if highways aren't upgraded, the price will be even higher.

"There are some economic consequences to not making some of these investments," said Margaret Melhorn, deputy minister of finance.

She also said spending on roads will have a positive economic impact.

"It will lower costs, increase tourism. There will also be the economic impact of spending an additional $100 million on highway construction."

She acknowledged the permit fee will impact business and consumers, but said it's nearly impossible to gauge.

"We have had to make some broad assumptions. A lot depends on consumption factors."

Vician emphasized the need to rebuild highways.

"The urgency of transportation needs has been heightened" by the increased traffic, especially trucks to mines and oil and gas fields.

"What we're seeing is additional maintenance cost, more degradation of the system ... gravel loss ... punch- outs of paved surfaces," he said.

"The structural capacity of some of our roads is in question."

But not everyone is opposed to the toll.

When the legislative committee was in Inuvik last month, Tuktoyaktuk leaders said the fee could give them what they've long sought, a link to the Dempster highway.

"Other people are saying we got a road but we don't know if we have the money to fix it," said William Nasogaluak. "I envy people with a road."

Have your say

The committee gathering input on the proposed highway permit fee system has already met in Inuvik and Fort Simpson. During the next two weeks, it will hit four communities.

- Oct. 10- 11: Fort Smith - - Blue Room of the Pelican Rapids Inn. Meetings are Wednesday evening and Thursday morning.

- Oct. 11- 12: Hay River - - Legion meeting room, Thursday evening and Friday morning.

- Oct. 15- 16: Norman Wells - - Community Hall, evening of the 15th, morning of the 16th.

- Oct. 17- 18: Yellowknife - - Committee Room A of the Legislative Assembly, 9 a.m- noon, 1:30- 5 p.m. and 7- 10 p.m. on Oct. 17 and morning of Oct. 18 (Highways Minister Vince Steen is scheduled for 9 a.m. and Finance Minister Joe Handley, 10:30 a.m.)

How it would work

Government envisions a system where a trucking company dispatcher would call a government call centre to get a trip permit number.

One trucking company expects administering the system will require hiring of at least one extra person.

By the numbers

- Permit fee for a Super B train, ranges from $180 to go from the NWT/Yukon border to Fort McPherson to $1,850 for a trip from the B.C./NWT border to Tibbitt Lake. A permit to travel from the NWT/Alberta border to Yellowknife would cost $1,100.

- C Train would pay a fee of $935 to go from the Alberta border to Fort Simpson, $240 to Hay River, $750 to Fort Smith and $1,030 to Yellowknife.

- Government figures are based on 20,600 truck trips in 1999, 29,715 in 2002, 26,480 in 2003, 27,733 in 2004, 28,327 in 2005 and 26,088 in 2008.

- GNWT's estimated annual impact on motor and heating fuel and groceries: $148 in Fort Simpson; $64 in Fort Resolution; $103 in Fort Smith; $132 in Rae- Edzo; $151 in Yellowknife; $221 in Wrigley; $27 in Inuvik, $15 in Sachs Harbour.

- Government estimates cost of freight will increase between two- cents and 37- cents per kilogram.

- Amount of paved highways: 661 km; Dust- controlled gravel: 883.1 km; Untreated gravel: 467 km.

SOURCES: Commercial Vehicle Trip Permit Fee Financial Impacts; Pros and Cons of Accelerating Highway 3 Reconstruction; Investing in Roads for People and the Economy: A Highway Strategy for the NWT.